What are the Aira Fitness franchisee's obligations regarding the purchase of fitness equipment in Item 8, and how does this relate to the franchisor's assistance with training in Item 11?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 8: **RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
In addition to participation in the insurance program, you must carry workers' compensation and employer liability coverage as required by the jurisdiction in which you operate the Fitness Aira Fitness Business.
All required insurance not included in the insurance program must be obtained from a responsible carrier or carriers acceptable to us (generally an AM Best rating of A- or better). All of the policies must name us and anyone else we designate with an insurable interest as additional insured and must include a waiver of subrogation in favor of each additional named insured.
Marketing and Promotional Materials
You may use only marketing and promotional materials that meet our standards (see Item 11 for more information on advertising and marketing).
Estimated Proportion of Required Purchases and Leases to all Purchases and Leases
We estimate that your required purchases will represent approximately 75 to 85% of your total purchases in connection with establishing the franchised business (excluding the franchise fee and other non-goods expenditures), and 5 to 10% of the ongoing costs that you will need to operate the business (excluding franchise fees and royalties and other non-goods expenditures).
Supplier Rebates; Description of Purchasing Cooperatives; Purchasing Arrangements
We and our affiliates also have arrangements with certain suppliers whereby we or our affiliate will receive rebates from franchisee purchases or leases, which may be a fixed amount per transaction or percentage of the purchase. We currently do not receive rebates from suppliers based on franchisee purchases but reserve the right to do so. We negotiate purchase arrangements for the benefit of the franchisees, namely forthe Initial Fitness Equipment Package. This does not guarantee that the price for these products or services will be lower than other products or services on the market. We do not have any purchasing or distribution cooperatives in the System as of the date of this Disclosure Document. We do not provide you any material benefits (such as renewal rights or the right to acquire additional franchises) based on your purchases from approved or designated suppliers.
[Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training]
ITEM 11
FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance:
Pre-Opening Obligations
Before you open your Aira Fitness Business, we will:
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- Provide you with site selection criteria and general design requirements for your Aira Fitness Business (Franchise Agreement, Sections 5A and 5C)
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- Provide you with the Approved Suppliers and Approved Supplies Lists (Franchise Agreement, Section 6D).
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- Provide you for purchase the Initial Fitness Equipment Package (Franchise Agreement, Section 6A)
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- Provide you with the Manual that details the specifications and procedures incidental to the operation of the Aira Fitness Business (Franchise Agreement, Section 6G).
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- Provide the initial training program described below (Franchise Agreement, Section 7B).
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- Determine whether you have met the requirementsto open the Aira Fitness Business (Franchise Agreement, Section 5D)
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- Provide grand opening promotional materials and assistance (Franchise Agreement, Section 8E).
[Item 23: **RECEIPTS]
If we provide any additional training, assistance or consultation, you must cover all costs and expenses for such training, assistance or consultation.
[Item 23: **RECEIPTS] You must only use approved equipment, products, fixtures, signs, advertising materials, trademarked items and other items (collectively, "approved supplies") in the Aira Fitness Business as listed in the approved supplies and approved suppliers lists, as we may amend from time to time.
You must acquire and use all computer hardware and related accessories and peripheral equipment, including door access components, camera and surveillance equipment, televisions, and related items that we prescribe for use by the Aira FitnessBusiness.
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, franchisees are required to purchase an Initial Fitness Equipment Package from Aira Fitness-approved suppliers. Item 11 states that Aira Fitness will provide franchisees with a list of Approved Suppliers and Approved Supplies. Item 8 further clarifies that franchisees must use only approved equipment, products, fixtures, signs, advertising materials, trademarked items, and other items listed in the approved supplies and approved suppliers lists, which Aira Fitness may amend from time to time. Aira Fitness does not guarantee that the price for these products or services will be lower than other products or services on the market.
Item 8 estimates that required purchases will represent approximately 75% to 85% of the franchisee's total purchases in connection with establishing the franchised business (excluding the franchise fee and other non-goods expenditures), and 5% to 10% of the ongoing costs to operate the business (excluding franchise fees and royalties and other non-goods expenditures). Aira Fitness also negotiates purchase arrangements for the benefit of the franchisees, namely for the Initial Fitness Equipment Package.
Regarding training, Item 11 indicates that Aira Fitness will provide the initial training program. However, if Aira Fitness provides any additional training, assistance, or consultation, the franchisee must cover all associated costs and expenses. This suggests that while the initial equipment purchase is facilitated through approved suppliers and potentially negotiated arrangements, franchisees are responsible for ensuring they and their staff are adequately trained to use the equipment, potentially incurring additional costs for training beyond the initial program. Aira Fitness also requires franchisees to acquire and use all computer hardware and related accessories and peripheral equipment, including door access components, camera and surveillance equipment, televisions, and related items that Aira Fitness prescribes for use by the Aira Fitness Business.